Essential Utilities Inc (WTRG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 875,945 | 715,143 | 669,275 | 610,400 | 459,298 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,198,810 | 5,896,180 | 5,377,390 | 5,184,450 | 4,683,880 |
| Return on total capital | 14.13% | 12.13% | 12.45% | 11.77% | 9.81% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $875,945K ÷ ($—K + $6,198,810K)
= 14.13%
Essential Utilities Inc's return on total capital has been showing a positive trend over the past five years. The ratio has increased steadily from 9.81% as of December 31, 2020, to 14.13% as of December 31, 2024. This indicates the company's ability to generate returns from both its debt and equity capital employed in its operations. The increasing trend suggests that Essential Utilities Inc has been effectively utilizing its capital to generate profits, which is a positive sign for investors and stakeholders. Furthermore, the consistent improvement in return on total capital reflects the company's efficiency in deploying its resources to create value for its shareholders.
Peer comparison
Dec 31, 2024